Lending questions.

I got a weird email from our lender that doesn't make any sense. I'm not going into details but DH says he thinks that to avoid PMI you need to put 25% down now. Has anyone heard this?

Also I bought down my rate and paid $1800. Now there are points associated with that which will be paid as closing costs. But I already paid to do this. Can anyone explain this to me.

Re: Lending questions.

I would just call your lender and ask directly (if you haven't already) for clarification of the confusing email and an explaination of the points.

But for a conventional mortgage, 20% is the down payment you need to avoid pmi. To my knowledge, nothing has changed on that front.

The points thing -- it varies so much lender by lender. Did you lock it and now have to extend it, which usually involves paying points or a fee or something?

Re: Lending questions.

I thought you had to pay PMI if you put under 20% down.

Re: Lending questions.

I haven't heard of any changes to PMI requirements.

I have heard that one way to avoid PMI is to pay points. And to me it seems like your lender is trying to say that you are at 25% and to avoid that you have top pay points. Sounds to me like the lender is trying to pull a fast one on you.

Who's the lender?